Perhaps the first and most important act to commit to is the detailed tracking exercise of the expenses for the individual monthly commitments. Creating a tracking system from the close scrutiny of bills collected over a three month period will help give the individual an idea of the general commitments to date. By having this clearly listed and detailed the individual will be able to design a suitable budget that can be easily followed without the need to be too constrictive. Settings goals is also another type of personal budgeting element that should be included as a form of incentive to the individual. It is also a way to create discipline that will help the individual prepare for bigger commitments in the future. Setting goals will also help the individual have a better perspective on the future possibilities of investment opportunities.
The act to creating and adhering to a personal budget plan can also help the individual be disciplined in other fields too. This may contribute positively in other areas, such as job commitments, family commitments, retirement plans, investments and any other area that may require the same discipline that produces successful results always. It will also help the individual to make wiser judgment calls, thus ensuring the possibility of getting in debts be kept at a minimum or even eliminated altogether.
One of the most effective methods to ensure a budget is consistently adhered to is to avoid putting one’s self in a situation where the temptation to spend is hard to control. This would mean cutting down on window shopping sprees and other frivolous indulgences, until the individual is strong enough to do so without actually having to spend on anything. In some more drastic cases the individual may even have to resort to changing the circle of friends he or she hangs out with, if the said group prioritizes activities like shopping and other equally costly indulgences.